Strong EBITDA increase +8%, driven by margin recovery in Market BU, renewable energy generation and full integration of waste collection company Sei Toscana. EBITDA guidance expected to improve strongly with +10% year-on-year growth. Continued investments in line with the Business Plan and up 12%, mainly allocated to the development of new renewable sources, expansion of plant capacity for material recovery from waste, resilience and service quality of water and electricity distribution networks and energy efficiency projects. Group net profit increased (+4%) in line with industrial performance.

Main indicators

• Gross Operating Margin (EBITDA) in the amount of EUR 606 million (+8% compared to EUR 563 million as at 30/06/2022). The EBITDA increase is mainly driven by the recovery of the Market BU's margins, the positive impact of the energy scenario on renewable generation and the integration of SEI Toscana, in a context characterised by lower energy volumes (EUR -19 million) and higher costs due to inflation. Organic growth of 14 million euros for the period, thanks to investments on distribution services and plant development of the Waste BU.

• Operating profit (EBIT) of 248 million euros (-12% compared to 282 million euros as of 30/06/2022), as it was affected by higher provisions for risks of 34 million euros related to the Decree Law concerning the price cap on renewable energy prices of the Italian government, of which 14 million euros related to 2022 and 20 million euros related to 2023.

• Group net profit attributable to shareholders of EUR 143 million (+4% compared to EUR 137 million as at 30/06/2022).

• Technical investments and energy efficiency works amounted to EUR 515 million, up 12% compared to the first half of 2022, with an increase of 35% in waste treatment investments for the construction of new treatment plants.

• Net financial debt at EUR 3,920 million (+17% compared to EUR 3,347 million as at 31/12/2022). This increase is mainly attributable to investments made during the period to support the planned development of territorial infrastructure and improve service quality, particularly in the water sector, and sustaining energy transition; as well as the temporary increase in working capital.

• Excellent results of ESG performance indicators in line with Plan forecasts and improving on the first half of 2022: +35% of material recovered in the Group's plants, +67% of biomethane production, 71% separate waste collection and -6% drop in water withdrawal per inhabitant per day.

• Total workforce of 10,897 employees (+1,552 compared to 30/06/2022).

Reggio Emilia, 27 July 2023 - The Board of Directors of IREN S.p.A. today approved the consolidated financial statements as at 30 June 2023.

“We are approving today brilliant results that are the effect of Iren's ability to make rapid progress in achieving the goals of the Strategic Plan: the strong growth in Ebitda of +8% and the increase in investments of +12% allow the raising of EBITDA guidance on the year-end of +10%.” - declares Luca Dal Fabbro, Executive Chairman of Iren – “The investments expected for 2023, amounting to €1.3 billion, are mainly aimed at efficiency and increasing the quality of services offered and optimizing the production mix, making it even safer and more sustainable, and ensuring Iren greater resilience in the face of any evolutionary scenario.”

“The Iren Group's growth path continues in line with the Plan's ESG objectives, based on an increase in the value perceived by all stakeholders” - says Moris Ferretti, Executive Deputy Chairman of Iren – “The reduction of the environmental impacts of industrial activities, the further increase in the quality of services for customers after the 2022 energy crisis, also through the development of energy communities, the strong focus on suppliers in a complex inflationary scenario and the commitment to territories with the increase in Iren's workforce of more than 1,500 people characterised the last 12 months.”

Following in the attached document